<ARTICLE> 5 <MULTIPLIER> 1,000 <PERIOD-TYPE> 6-MOS <FISCAL-YEAR-END> DEC-31-1998 <PERIOD-START> JAN-01-1998 <PERIOD-END> JUN-30-1998 <CASH> 27,179 <SECURITIES> 10,506 <RECEIVABLES> 15,202 <ALLOWANCES> 1,856 <INVENTORY> 12,882 <CURRENT-ASSETS> 72,821 <PP&E> 27,558 <DEPRECIATION> 24,063 <TOTAL-ASSETS> 77,805 <CURRENT-LIABILITIES> 17,063 <BONDS> 0 <PREFERRED-MANDATORY> 0 <PREFERRED> 0 <COMMON> 59,960 <OTHER-SE> 667 <TOTAL-LIABILITY-AND-EQUITY> 77,805 <SALES> 53,329<F1> <TOTAL-REVENUES> 53,329 <CGS> 33,151<F2> <TOTAL-COSTS> 33,151 <OTHER-EXPENSES> 24,797 <LOSS-PROVISION> 22 <INTEREST-EXPENSE> 10 <INCOME-PRETAX> (1,880) <INCOME-TAX> (658) <INCOME-CONTINUING> (1,222) <DISCONTINUED> 0 <EXTRAORDINARY> 0 <CHANGES> 0 <NET-INCOME> (1,222) <EPS-PRIMARY> (0.07) <EPS-DILUTED> (0.07) <FN> <F1>Includes revenues from licensing of software and support services. <F2>Includes costs from licensing of software and support services. </FN>